Rosalind Evans
In a significant move for its over six crore subscribers, the Employees’ Provident Fund Organisation (EPFO) has set the interest rate on employees’ provident fund (EPF) deposits at 8.25% for the fiscal year 2023-24. This adjustment marks a three-year peak from the previous year’s rate of 8.15%. The decision, made by the EPFO’s apex decision-making body, the Central Board of Trustees (CBT), reflects a positive shift towards enhancing the savings of its members.
Historically, the EPF interest rates have seen fluctuations, with the rate for 2021-22 dipping to an over four-decade low of 8.1%, the lowest since 1977-78 when it stood at 8%. The recent increment is a part of EPFO’s ongoing efforts to provide better returns to its subscribers amidst varying economic conditions. “The EPFO’s apex decision-making body, Central Board of Trustees (CBT) has decided to provide 8.25 percent rate of interest on EPF for 2023-24 at its meeting on Saturday,” revealed an inside source.
The hike in interest rates is subject to the approval of the Ministry of Finance. Once ratified by the government, the enhanced interest rate will be credited to the accounts of the EPFO’s vast subscriber base, ensuring a more lucrative return on their retirement savings. The EPFO’s practice of finalizing interest rates only after government ratification underscores the collaborative effort between the organization and the state to secure financial well-being for the workforce post-retirement.
The EPFO’s decision to elevate the EPF interest rate to 8.25% for 2023-24 is a welcome change for its subscribers, promising a higher yield on their retirement funds. This move reflects the organization’s commitment to the financial security of its members but also contributes to a more stable and reassuring savings environment amidst the economic uncertainties.
